OECD warns of supply problems for critical raw materials

The OECD warned on Tuesday that growing export restrictions on critical raw materials are putting global supply chains under pressure, with several minerals crucial to digital technology and renewable energy increasingly affected by such curbs.

The number of countries introducing such restrictions had grown, particularly in Africa and Asia, the Organisation for Economic Cooperation and Development said.

Certain minerals essential to energy systems – including cobalt, manganese, graphite and rare earths – are among the most affected. Around 70% of global exports of cobalt and manganese, which are vital to key industries such as battery and chip manufacturing, were subject to at least one export restriction between 2022 and 2024.

While demand for critical raw materials was rising rapidly, supply was adjusting only slowly and remained highly concentrated, the OECD stressed.

“Countries around the world depend on reliable access to critical raw materials, which are essential for economic growth, innovation and energy security,” OECD Secretary General Mathias Cormann said at the OECD Forum on Critical Minerals in Istanbul.

“Export restrictions can exacerbate the vulnerability of highly concentrated supply chains by limiting export volumes and driving up prices,” he said.

He said it was important to make restrictions more transparent to promote the opening and diversification of markets for critical minerals and to foster mutually beneficial partnerships with producing countries.